# Plain Language Summary: Saving Gig Economy Taxpayers Act

This bill changes how the IRS tracks income from gig economy workers and other people who get paid through payment apps and online platforms like Venmo, PayPal, Square, and similar services. Right now, these payment companies have to report to the IRS whenever someone receives money through their platforms. The bill would raise the threshold for when companies actually have to file these reports with the government.

Specifically, the bill says payment companies only need to report your income to the IRS if two things happen: you receive more than $20,000 in payments AND you have more than 200 separate transactions. Before this bill, the threshold was much lower—just $600 in total payments triggered a report. So if you're a gig worker, freelancer, or small business owner who uses these platforms, you'd only get reported to the IRS if you hit both the $20,000 and 200-transaction marks. This means many people with smaller side incomes wouldn't be automatically flagged to the IRS anymore.

The bill's supporters argue this helps gig economy workers and small earners avoid unnecessary tax complications and paperwork. Critics might counter that raising the reporting threshold could reduce tax compliance and make it easier for people to underreport income. Either way, if this passes, it would mean fewer people receive those IRS forms documenting their payment app income, which could simplify things for casual earners but might also reduce government visibility into how much money is actually flowing through these platforms.

Saving Gig Economy Taxpayers Act

Miller, Carol D.

Saving Gig Economy Taxpayers Act This bill modifies requirements for third party settlement organizations to eliminate their reporting requirement with respect to the transactions of their participating payees unless they have earned more than $20,000 on more than 200 separate transactions in an applicable tax period. A third party settlement organization is the central organization that has the contractual obligation to make payments to participating payees (generally, a merchant or business) in a third party payment network. This reverses a provision in the American Rescue Plan Act of 2021 that lowered the reporting threshold to $600 with no minimum on the number of transactions.